SISTEMA ANNOUNCES TRANSACTION IN OWN SHARES AND PURCHASE OF REVERSE CONVERTIBLE
FOR MTS ADRS
Sistema (LSE: SSA), the largest private sector consumer services company in
Russia and the CIS, today announced that it intends to purchase its own stock
through a wholly owned subsidiary 'Sistema Finance Investments' at a price of
US$ 1,350 per share for a total cash consideration of up to US$ 150 million.
As announced earlier, Sistema is establishing a share option programme for the
top management of the company. The acquired shares are intended for the funding
of this programme and may also be used in connection with certain future
Sistema also purchased six months reverse convertible certificates for Mobile
TeleSystems OJSC (MTS) ADRs, which were issued outside of Russia and are quoted
on SWX Swiss Exchange, for a total cash consideration of US$ 50 million. Upon
their maturity, Sistema is entitled to a fixed rate coupon payment and will
either redeem them by paying back the principal amount or by delivering a fixed
quantity of MTS' ADRs, depending on the price of MTS' ADRs at that time.
For further information, please visit www.sistema.com or contact:
Sistema Investor Relations Shared Value Limited
Victor Kurilo Matthew Hooper
Tel: +7 495 629 2741 Tel. +44 (0) 20 7321 5023
Sistema is the largest private sector consumer services company in Russia and
the CIS, with over 75 million customers. Sistema develops and manages
market-leading businesses in selected service-based industries, including
telecommunications, technology, banking, real estate, retail and media. Founded
in 1993, the company reported revenues of US$ 10.9 billion for the full year of
2006, and total assets of US$ 20.1 billion as at December 31, 2006. Sistema's
shares are listed under the symbol 'SSA' on the London Stock Exchange, under the
symbol 'AFKS' on the Russian Trading System (RTS), and under the symbol 'SIST'
on the Moscow Stock Exchange (MSE).
Some of the information in this press release may contain projections or other
forward-looking statements regarding future events or the future financial
performance of Sistema. You can identify forward looking statements by terms
such as 'expect,' 'believe,' 'anticipate,' 'estimate,' 'intend,' 'will,'
'could,' 'may' or 'might' the negative of such terms or other similar
expressions. We wish to caution you that these statements are only predictions
and that actual events or results may differ materially. We do not intend to
update these statements to reflect events and circumstances occurring after the
date hereof or to reflect the occurrence of unanticipated events. Many factors
could cause the actual results to differ materially from those contained in our
projections or forward-looking statements, including, among others, general
economic conditions, our competitive environment, risks associated with
operating in Russia, rapid technological and market change in our industries, as
well as many other risks specifically related to Sistema and its operations.